FirstCity Financial Corporation (NASDAQ:FCFC) Investor Files Lawsuit In Effort To Block Acquisition By Värde Partners, Inc.

If you purchased shares of FirstCity Financial Corporation (NASDAQ:FCFC) prior to December 21, 2012, and currently hold any of those NASDAQ:FCFC shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to, or call us at (858) 779-1554.
Company Name(s): 
FirstCity Financial
Case Name: 
FirstCity Financial Deal Case 02/04/2013
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Mergers and Acquisition
Date Filed: 

Feb. 05, 2013 (Shareholders Foundation) -- An investor in shares of FirstCity Financial Corporation (NASDAQ:FCFC) filed a lawsuit to halt the proposed takeover of FirstCity Financial Corporation by Värde Partners, Inc. at $10.00 per NASDAQ:FCFC share.

The plaintiff says that the defendants breached their fiduciary duties owed to NASDAQ:FCFC investors by agreeing to sell the company too cheaply via an unfair process.

On December 21, 2012, FirstCity Financial Corporation (NASDAQ: FCFC) and Värde Partners, Inc. announced that they have entered into a merger agreement under which certain funds managed by Värde Partners will acquire FirstCity Financial Corporation. Under the terms of the merger agreement, FirstCity Financial Corporation stockholders will receive $10.00 per share in cash for each share of FirstCity stock they own. The transaction is valued at $224.9 million, including debt.

However, the plaintiff claims that the $10-offer is too low and undervalues the company. Indeed, FirstCity’s financial performance improved lately. For instance, First City Financial Corporation reported that its annual Revenue rose from $45.20 million for 2008 to $74.32 million in 2011 and its Net Loss of $46.67 million in 2008 turned into a Net Income of $24.22 million in 2011. Furthermore, shares of FirstCity Financial Corporation (NASDAQ:FCFC) traded as recently as April 2012 as high as $10.00 per share.